Enterprise strategy alignment framework

ABSTRACT

An enterprise strategy management system includes a first software module adapted to formulate a strategy description based on an assessment of environmental data, a second software module adapted to align the strategy description with available enterprise resources and deploy strategy implementation responsibilities, and a third software module adapted to measure the execution of the strategy and identify opportunities to optimize strategic performance. The first, second and third software modules are adapted to implement a continuous strategy management cycle, and may be executed in any order. In one embodiment, the first software module is an STRATEGY FORMULATION module, the second software module is an STRATEGY ALIGNMENT module and the third module is an STRATEGY IMPLEMENTATION module. The STRATEGY FORMULATION module includes software components for assessing environmental data, formulating and analyzing strategic alternatives and determining and approving a final, multi-level strategy description. The STRATEGY ALIGNMENT module includes software components for aligning strategy components, describing and aligning operational strategy components, planning projects, initiatives and performance metrics activity, and deploying implementation responsibilities. The STRATEGY IMPLEMENTATION module includes software components for activating the launch of activities, implementing and measuring the execution of strategy and performance results, and identifying the opportunities to optimize strategic performance.

BACKGROUND OF THE INVENTION

[0001] 1. Field of the Invention

[0002] The present invention relates generally to the field of strategicplanning and, in particular, to a system and method for aligning,managing and implementing an enterprise strategy.

[0003] 2. Description of the Related Art

[0004] Strategy management is critical to the success of manyorganizations such as businesses, charities, government agencies andschools. Through a strategic planning process, the leaders of anorganization attempt to clarify the organization's long-term goals anddevelop a plan for accomplishing those goals. A successful strategyanticipates future threats to the organization and positions theorganization to take advantage of new opportunities that may arise.

[0005] The strategic planning process is time consuming, expensive andrequires a complex analysis of the organization and its environment. Asa result, the typical strategic planning process is implemented onlyonce per year and only addresses a small subset of the issues that facethe organization. A conventional strategic planning process for abusiness is illustrated in FIG. 1. A strategic planning committee iscreated from the business' senior management, and the members of thestrategic planning committee conduct an audit of the business and itsenvironment (i.e., an environmental scan) to determine the business'strengths and weaknesses (Step 2). A typical audit involves intensivedata gathering from sources throughout the business organization, aswell as sources external to the business. Next, the planning committeedefines the organization's mission, vision and guiding principles (Step4). A mission statement describes the present nature of the business,including the business' purpose and direction (i.e., the goals thebusiness is trying to accomplish). A vision statement describes thedesired future of the business, and guiding principles outline thevalues and philosophy of the business that guide the behavior of itspersonnel.

[0006] The planning committee compares the current state of thebusiness, as determined by the environmental scan and the missionstatement, to the business' desired future as identified in the visionstatement and guiding principles. Based on this comparison, the planningcommittee identifies long-term goals, which define the changes thebusiness should implement in order to achieve its stated vision (Step6). The planning committee selects a manageable number of long-termsgoals that are reasonable for the business to achieve and definesstrategies for achieving these selected goals. The environmental scan,mission, vision, guiding principles and long-term goals and strategiesare compiled into a formal strategic plan, which is used by managersthroughout the organization to create operating plans directed towardsaccomplishing the organization's goals (Step 8). Managers and employeesthen implement the operating plans (Step 10). After creating the formalstrategic plan, the planning committee disbands until the following yearwhen a new strategic planning process will start.

[0007] The prior art strategic planning processes have many drawbacks.For example, the time, effort and expense required by the strategicplanning process limit effective strategic planning to a once-a-yearevent that addresses only a small number of strategic objectives.Changes in the environment or refinements to the strategic plan areseldom considered until the next year's strategic planning process. As aresult, organizations are slow to react to their environments, includingenvironmental changes that may invalidate some of the assumptionsunderlying the current strategic plan.

[0008] To assist with the strategic planning process, many organizationsretain large consulting firms. Typically, consultants are retained toguide the planning committee through the strategy formulation process,and leave the implementation of the strategy to the organization. Alarge organization may have numerous managers in various business units,departments and divisions, with each manager independently interpretingthe strategic plan and attempting to develop an operating plan thatachieves the strategic goals. To ensure that its managers are focused onachieving the enterprises' strategic goals, many organizations use abalanced scorecard (BSC) system. Through a BSC system, strategic goalsare described in terms of metrics that must be met in order to achievethe strategy. These metrics are passed to the managers who developoperating plans to achieve these metrics.

[0009] Although a BSC system may simplify strategy planning andimplementation, relying on a BSC system has many drawbacks. For example,an entire strategy can seldom be described completely in terms ofnumbers and there is usually a “gap” between the selected metrics andthe strategic goal that will be ignored during strategy implementation.In addition, the performance metrics used in the BSC system areestablished based on historical results. While managers and employeesare working to achieve these historical metrics, changes in the currentenvironment often go ignored. When it is discovered that managers andemployees have been assigned metrics that do not further the strategicgoals, the historical results are analyzed and new metrics are created.

[0010] A successful implementation of the strategic plan will requirethe alignment of the organization's resources and strategic initiativeswith the organization's strategic vision. Recent advancements havefocused on improving the predictive and analytical capabilities of a BSCsystem to make better predictions of the future and create better fitswith strategic goals. There has been little advancement, however, inimproving the day-to-day management of an enterprise's strategyimplementation. Large enterprises, face new challenges every day andmust be prepared to react to changes in their resources, environment andstrategy. In today's world, the enterprise's ability to manage andaccelerate organizational change has become an essential element ofsuccess.

SUMMARY OF THE INVENTION

[0011] In a preferred embodiment, the present invention provides anenterprise alignment framework for assisting an organization'smanagement in focusing an entire enterprise on achieving identifiedstrategic goals and managing this alignment on a day-to-day basis. Theenterprise alignment framework provides managers with a tool to ensurethat strategic goals are well supported by initiatives and that theinitiatives are focused in the same direction with minimal overlap. Theenterprise alignment framework also assists managers in definingleadership roles, responsibilities, and performance metrics.

[0012] In a preferred embodiment, the ESM includes a STRATEGYFORMULATION software module, a STRATEGY ALIGNMENT software module and aSTRATEGY IMPLEMENTATION software module. The STRATEGY FORMULATION moduleincludes applications and processes for assisting the organization'smanagement in setting and refining the strategic direction of theorganization. In operation, end users utilize the STRATEGY FORMULATIONmodule to assess the organization's internal and external environment,formulate and analyze strategic alternatives and determine and approve afinal strategy description. The STRATEGY ALIGNMENT module includesapplications and processes for assisting the organization's managementin focusing the enterprise on achieving the described strategic goals.In operation, end users utilize the STRATEGY ALIGNMENT module to aligndescribed strategy components, describe and align operational strategycomponents, plan projects, initiatives and performance metrics activity,and deploy implementation responsibilities. The STRATEGY IMPLEMENTATIONmodule includes applications and processes for assisting theorganization's management in efficiently distributing and executing theorganization's strategy. In operation, end users utilize the STRATEGYIMPLEMENTATION module to the launch of activities, implement and measurethe execution of strategy and performance results, and identifyopportunities to optimize strategic performance. In a preferredembodiment, the STRATEGY FORMULATION module, STRATEGY ALIGNMENT moduleand STRATEGY IMPLEMENTATION module interact to create a continuousstrategy planning cycle. Unlike the prior art strategic planningprocesses, the steps in the continuous strategy planning cycle may beexecuted at any time and in any order, allowing management to takeadvantage of new opportunities as they arise and refine the strategicplan as problems are presented.

[0013] The STRATEGY FORMULATION module preferably includes four softwarecomponents (ASSESS, FORMULATE, ANALYZE and SELECT) that function as acontinuous STRATEGY FORMULATION cycle. The four software components maybe executed at any time and in any order. The ASSESS component assiststhe organization's management in identifying the key forces in both theinternal and external environments that may affect the organization inthe future and analyzing how these forces affect the current and futureof the organization. The FORMULATE component assists the organization'smanagement in creating and articulating alternative strategies for theorganization. The ANALYZE component assists the organization'smanagement in reviewing strategic alternatives through the use ofanalytic methods. The SELECT component assists the organization'smanagement in selecting and finalizing the vision and strategy of theorganization.

[0014] In a preferred embodiment, the FORMULATE component includes astrategy formulation engine that assists the user with the generation ofa multi-layered strategy description that includes integratedimplementation requirements. The strategy formulation engine includes atleast three layers. In the first layer the organization's strategicdirection is described, including the current state of the organizationand a vision of the organization's future. In the third layer, strategyplatform requirements are identified for implementing the strategy. Inthe second layer, the strategy description and the strategy platformrequirements are integrated.

[0015] In a preferred embodiment, the strategy formulation engineprovides a framework for creating a five-layer strategy description. Inthe first layer, the user formulates a description of the strategicdirection of the organization's growth strategy, including a vision ofthe organization's future and a target date for achieving the vision. Inthe second layer, the user breaks down the strategic direction into amore detailed description of the evolution of the organization'sbusiness phases, with each business phase having an associated targetdate. In the third layer, the user creates a roadmap of strategyplatforms for the organization to follow over the course of thestrategic timeframe. The user is preferably provided with a graphicaluser interface for selecting, creating, manipulating and interconnectingstrategy platforms. In the fourth layer, the strategy platforms areselected, created and/or modified to achieve the strategic vision. In apreferred embodiment, each strategy platform includes requirements andoutputs. Strategy platform requirements define the specific needs thatare necessary to create the strategy platform. Strategy platform outputsidentify the direct and indirect benefits expected to be received fromthe implementation of the strategy platform. The inputs to a strategyplatform include at least one list of strategy platform requirements.Strategy platform requirements are the detailed requirements for thestrategy platforms and may be directly processed and transformed intoimplementation activities. In the fifth layer, the strategy platformrequirements are identified and categorized and current capabilities andfuture requirements for the strategy platform requirements to assistwith the strategic goals are defined.

[0016] The STRATEGY ALIGNMENT module preferably includes four components(ALIGN STRATEGY, ALIGN OPERATIONS, PLAN and ASSIGN) that function as acontinuous cycle. The four software components may be executed by an enduser at any time and in any order. The ALIGN STRATEGY component assiststhe organization's management in ensuring that the strategic elements ofthe approved strategy are aligned. In a preferred embodiment, alignmentis performed using an alignment matrix that illustrates the relationshipbetween two strategic elements. The ALIGN OPERATIONS component assiststhe organization's management in ensuring that essential aspects of theorganization's operations, technology, and people are aligned with theapproved strategy. The PLAN component assists the organization'smanagement in developing plans corresponding to the alignment. TheASSIGN component assists the organization's management in thesynchronization, approval and assignment of enterprise initiatives,projects and metrics.

[0017] In a preferred embodiment, the STRATEGY ALIGNMENT module includesa multi-level enterprise strategy alignment. On an enterprise-level, theenterprise strategy alignment includes a plurality of alignmentframeworks, each framework providing a graphical representation ofnumerous alignment status between various sets of strategic elements. Ina preferred embodiment, the enterprise strategy alignment includes fivealignment matrices on each framework. The first alignment matrix is usedto align a set of strategic goals and a set of performance metrics. Thesecond alignment matrix is used to align the set of strategic goals anda set of value creation platforms. The third alignment matrix is used toalign the set of performance metrics and a set of strategic initiatives.The fourth alignment matrix is used to align the set of value platformsand the set of strategic initiatives. The fifth alignment matrix is usedto align the set of strategic initiatives and a set of leadership roles.The enterprise strategy alignment may also include an operations-levelframework, and one or more intermediate-level frameworks that connectthe enterprise-level elements to the operations-level elements.

[0018] The STRATEGY IMPLEMENTATION module preferably includes fourcomponents (LAUNCH, IMPLEMENT, MEASURE and OPTIMIZE) that function as acontinuous cycle. The four software components may be executed by an enduser at any time and in any order. The LAUNCH component manages thelaunch of implementation activity for the strategy across theenterprise. The IMPLEMENT component facilitates the day-to-daymanagement of initiatives, projects and metrics. The MEASURE componenttracks and reports on the implementation of the organization's strategy.The OPTIMIZE component identifies opportunities and areas forimprovement that arise during the execution of the organization'sstrategy.

[0019] A more complete understanding of the Enterprise StrategyAlignment Framework will be afforded to those skilled in the art, aswell as a realization of additional advantages and objects thereof, by aconsideration of the following detailed description of preferredembodiments. Reference will be made to the appended sheets of drawings,which will first be described briefly.

BRIEF DESCRIPTION OF THE DRAWINGS

[0020]FIG. 1 is a flow diagram illustrating a prior art strategicplanning process;

[0021]FIG. 2 illustrates a preferred environment for an enterprisestrategy management system;

[0022]FIG. 3 illustrates a preferred embodiment of an enterprisestrategy management application;

[0023]FIG. 4 illustrates a preferred embodiment of the software modulesof an enterprise strategy management application;

[0024]FIGS. 5a-d illustrate a preferred data flow of the softwarecomponents of a STRATEGY FORMULATION module;

[0025]FIGS. 6a-d illustrate a preferred data flow of the softwarecomponents of a STRATEGY ALIGNMENT module;

[0026]FIG. 7 illustrates a preferred embodiment of an alignment matrix;

[0027]FIGS. 8a-d illustrate a preferred data flow of the softwarecomponents of a STRATEGY IMPLEMENTATION module; and

[0028]FIG. 9 illustrates a preferred strategy formulation engine;

[0029]FIGS. 10a-c illustrate user views of various levels of a strategyformulation engine;

[0030]FIG. 11 illustrates a strategy platform;

[0031]FIG. 12 provides an example of a completed strategy platform;

[0032]FIG. 13 is a preferred database structure for storing strategyrequirements data;

[0033]FIG. 14 illustrates a preferred embodiment of the enterprisealignment process;

[0034]FIG. 15a-b illustrates a preferred embodiments of strategy andoperational frameworks FIG. 16 illustrates a preferred data relationshipof and enterprise strategy alignment FIG. 17 illustrates a sample dataflow of alignment objects FIG. 18 illustrates the preferred process foraligning objects in a strategy alignment FIG. 19 illustrates a sampledata flow from a data base to a Align module

DESCRIPTION OF A PREFERRED EMBODIMENT

[0035] In a preferred embodiment of the present invention, an enterprisestrategy management application includes a framework for aligning,managing and implementing an enterprise strategy. In the detaileddescription of a preferred embodiment that follows, like elementnumerals are used to describe like elements illustrated in one or morethe aforementioned figures.

[0036] A preferred operating environment for an enterprise strategymanagement application (ESM) is illustrated in FIG. 2. At least one userdevice 12 is adapted to communicate with at least one web server 14through a network 16. The network 16 may include one or morecommunications networks that facilitate communications between the userdevice 12 and the web server 14, such as the Internet, intranets, localarea networks, wireless networks and telephone networks. In a preferredembodiment, the user device 12 is a personal computer. However, the userdevice 12 may be any device that is adapted to communicate with the webserver 14, such as a personal digital assistant, wireless applicationprotocol telephone or television set-top box. The web server 14preferably includes one or more World Wide Web servers that are adaptedto serve content to the user device 12 through web browser softwareexecuting on the user device 12.

[0037] The web server 14 is connected to an application server 18,preferably through a local area network. In a preferred embodiment, theapplication server 18 is a JAVA application server that executesapplications for managing and implementing the enterprise strategymanagement application. The application server 18 is connected to astorage system 20 that stores a plurality of databases used by the ESM.The storage system 20 may include a database server, a storage areanetwork, one or more network attached storage devices or any other datastorage device or system that is capable of storing ESM data. Theapplication server 18 is preferably connected to an integration engine22, which provides integration services between the ESM and otherenterprise applications, such as an enterprise resource planningapplication 24, a supply chain management application 26 or a clientrelationship management application 28. The integration engine 22 mayexecute on the application server 18 and/or one or more other serversconnected to the application server 18. Through the integration engine22, the ESM shares data and reports with other enterprise applications.

[0038] It should be appreciated that the operating environment describedin FIG. 2 is merely illustrative and that alternative network and serverconfigurations are contemplated within the scope and spirit of thepresent invention. For example, in alternative embodiments the functionsperformed by the data storage 20, application server 18 and web server14 may be performed by a single computer system or by a plurality ofcomputer systems distributed across any number of locations.

[0039] The ESM will now be described with reference to FIG. 3. In apreferred embodiment, the ESM is a software application that includes aSTRATEGY FORMULATION software module 30, a STRATEGY ALIGNMENT softwaremodule 40 and a STRATEGY IMPLEMENTATION software module 50. The STRATEGYFORMULATION module 30 includes applications and processes for assistingthe organization's management in setting and refining the strategicdirection of the organization. In operation, end users utilize theSTRATEGY FORMULATION module 30 to assess the internal and externalenvironment including performance results and newly identified strategicopportunities, formulate and analyze strategic alternatives anddetermine and approve a final strategy description. The STRATEGYALIGNMENT module 40 includes applications and processes for assistingthe organization's management in focusing the entire enterprise onachieving the described strategic goals. In operation, end users utilizethe STRATEGY ALIGNMENT module 40 to align the described strategycomponents, describe and align operational strategy components, planprojects, initiatives and performance metrics activity, and deployimplementation responsibilities. The STRATEGY IMPLEMENTATION module 50includes applications and processes for assisting the organization'smanagement in efficiently distributing and executing the organization'sstrategy. In operation, end users utilize the STRATEGY IMPLEMENTATIONmodule 50 to activate the launch of activities, implement and measurethe execution of strategy and performance results, and identify theopportunities to optimize strategic performance.

[0040] As will be described in greater detail below, the STRATEGYFORMULATION module 30, the STRATEGY ALIGNMENT module 40 and the STRATEGYIMPLEMENTATION module 50 interact to drive a continuous strategyplanning cycle 60 that offers many advantages over the prior art. Unlikethe prior art, the STRATEGY FORMULATION module 30 provides acomputer-implemented process for formulating strategy and the STRATEGYALIGNMENT module 40 provides a computer-implemented process for aligningstrategy with organizational resources. In addition, the continuousstrategy planning cycle 60 provides a framework that allows for theefficient management and implementation of a larger number of strategicobjectives than is practical under a traditional strategy planningapproach. Unlike the prior art, the steps in the continuous strategyplanning cycle 60 may be executed at any time and in any order, allowingthe organization to take advantage of opportunities as they arise andrefine different aspects of the strategic plan as problems arepresented. In addition, the continuous strategy planning cycle 60provides a framework to allow refinements to be made across multiplestrategy planning cycles. This allows an organization to select moreambitious strategic objectives (including strategic objectives that maynot appear achievable) than would be practical to implement under theprior art approaches. Additional advantages should be readily apparentto persons having ordinary skill in the art.

[0041] As illustrated in FIG. 4, the STRATEGY FORMULATION module 30preferably includes four software components: ASSESS 32, FORMULATE 34,ANALYZE 36 and SELECT 38. The software components of the STRATEGYFORMULATION module 30 interact to function as a continuous strategyformulation cycle and may be executed by end users at any time and inany order. A preferred embodiment of the ASSESS component 32 isillustrated in FIG. 5a. The ASSESS component 32 includes processes forassisting the organization's management in identifying and analyzing thekey forces in both the internal and external environments that mayaffect the organization in the future. The ASSESS component 32 analyzesenvironmental data from external research/information 70 (e.g., marketdata obtained from third-party research firms), internalresearch/information 72 (e.g., data received from other enterpriseapplications through the integration engine), the current approvedstrategy 80 (produced by the SELECT component 38) and enterpriseperformance information 118 (produced by the STRATEGY IMPLEMENTATIONmodule 50 from a prior strategy planning cycle) using techniques ofenvironmental scanning and competitive intelligence. In the preferredembodiment, the data used by the modules and components of the ESM maybe accessed through the storage system 20 (see FIG. 2). Based on theanalysis of the input data, the ASSESS module 32 generates output data74, including an external environmental assessment, an internalenvironmental assessment, a competency profile of the organization anddecision criteria. The output data 74 may be produced using conventionalanalytical approaches such as Strength, Weakness, Opportunity & ThreatAnalysis (SWOT Analysis) and internal Value Chain Analysis.

[0042] A preferred embodiment of the FORMULATE component 34 isillustrated in FIG. 5b. The FORMULATE component 34 includes processesfor assisting the organization's management in creating and articulatingalternative strategies for the organization. The FORMULATE component 34retrieves the external assessment, internal assessment, competencyprofile and decision criteria 74 generated by the ASSESS module 32 andanalyzes the data to formulate strategy alternatives 76. The strategyalternatives 76 may be produced using conventional approaches andconcepts such as Five-Forces Competitive Analysis and Strategic Groups,or through a strategy formulation engine that assists the user with thegeneration of a multi-layered strategy description that includesintegrated implementation requirements.

[0043] A preferred embodiment of a strategy formulation engine will nowbe described with reference to FIGS. 9-13. As illustrated in FIG. 9, thestrategy formulation engine assists the organization in generating amulti-layered strategy description 200 that integrates theorganization's strategic direction 202 with strategy platformrequirements 210. At the highest level, strategic direction 202, theorganization's strategic direction is described, including the currentstate of the organization and a vision of the organization's future. Atthe lowest level, strategy platform requirements 210, detailedrequirements are identified for implementing the strategy. The strategicdirection layer 202 and the strategy platform requirements layer 210 areintegrated through at least one intermediate layer, such as businessmodel evolution/phases layer 204, strategy platform integration layer206 and strategy platforms layer 208.

[0044] A preferred operation of the strategy formulation engine will nowbe described with reference to FIGS. 10a-c & 11. As illustrated, thestrategy formulation engine provides the user with at least oneinterface for each layer 202-210 that allows the user to create, editand manipulate information associated with the layer. An interface forviewing the first layer, strategic direction 202, is illustrated in FIG.10a. In this layer, the user formulates a description of the strategicdirection of the organization's growth strategy, including a vision ofthe organization's future 220 and a target date 222 for achieving thevision 220. In a preferred embodiment, the strategic directioncorresponds to a conventional vision statement, but may include a morecomplex description or be presented in an alternative format that issuited to the organization. For example, the strategic direction may becomprised of a single phrase, such as “creating world class technicalsupport systems,” or a detailed report which may be adapted from thedata output from the ASSESS component. In a preferred embodiment, thestrategy formulation engine stores sample descriptions of current states224 and future visions 220 for selection and/or editing by the user.These samples may include descriptions from a prior continuous strategyplanning cycle, user defined samples and predefined samples that includecommon descriptions of current states 224 and future visions 220.

[0045] A preferred interface for viewing the second layer, businessmodel evolution/phases 202, is illustrated in FIG. 10b. In the secondlayer, the user breaks down the strategic direction 202 into a moredetailed description of the evolution of the organization's businessphases. Each business phase, such as business phases 226 a-c has anassociated target date 228 a-b and 224 for completion of the businessphase. For example, a computer hardware company with a disjointedtechnical support operation may have a strategic vision of “creatingworld class technology support systems.” This strategic direction may bebroken down into an “enabling infrastructure phase” that includes thecreation of a basic infrastructure and foundation upon which the worldclass technology support systems will be built. A second business phasemay be an “enhanced infrastructure phase” that includes building uponthe basic infrastructure to offer certain enhanced services tocustomers. A third business phase may be a “break through value creationphase” that includes building a breakthrough infrastructure that offersbreakthrough services. In a preferred embodiment, the strategyformulation engine stores sample business phase descriptions forselection and/or editing by the user. These samples may include businessphases from a prior continuous strategy planning cycle, user definedsamples and predefined samples that include common business phases forimplementing various strategic directions.

[0046] A preferred interface for viewing the third layer, strategyplatform integration 206, is illustrated in FIG. 10c. In the thirdlayer, the user creates a roadmap of strategy platforms for theorganization to follow over the course of the strategic timeframe. Asillustrated, the user is presented with a graphical user interface forselecting, creating, manipulating and interconnecting strategicplatforms, such as strategic platforms 230 a-e and 232 a-c. The positionof each strategic platform 230 a-e and 232 a-c correlates the strategicplatform with a business phase 226 a-c and arrows are used to identifythe interrelationships between the strategic platforms. Preferably eachstrategic platform defines a milestone for achieving the correspondingbusiness phases defined in the second layer. The strategic platforms maybe selected from a list of strategic platforms, including predefinedstrategic platforms that are commonly used to achieve particularbusiness phases, and strategic platforms created and/or modified in aprior strategy planning cycle.

[0047]FIG. 10c illustrates a strategy roadmap for a computer hardwarecompany. In the company's current state, technology support capabilitiesare distributed throughout the organization. In the first layer, thestrategy planning committee identified a long-term goal 220 of improvingits technology support capabilities and offering world class technologysupport by the target date 222. In the second layer, the companyidentified three business phases 226 a-c and target dates for thecompletion of each phase. In the first business phase 226 a, the companywill create the necessary infrastructure needed to enable the strategicvision 222. In the second business phase 226 b, the company will use theinfrastructure to enhance its services and capabilities. In the thirdbusiness phase 226 c, the company will build a breakthroughinfrastructure to enable breakthrough services. In the third layer, thecompany created a roadmap of strategy platforms 230 a-e and 232 a-c tofollow over the course of the strategic timeframe to achieve each of thebusiness phases. In one embodiment, the strategy platforms may begrouped by the user for easier manipulation, such as the group ofstrategy platforms 230 a-e for building out the infrastructure and thegroup of strategy platforms 232 a-c for building out customer supportcapabilities. The groups may be predefined, created by the user orretrieved from prior strategy planning cycles.

[0048] In the fourth layer, strategy platforms 206, individual strategyplatforms are selected, created and/or modified to achieve the strategicthemes. In a preferred embodiment, a strategy platform is a repeatableformula for the creation of value for the organization that includesrequirements and outputs. Strategy platform requirements define theinputs that are necessary to create the strategy platform. Strategyplatform outputs identify the direct and indirect benefits expected tobe received from the implementation of the strategy platform. Apreferred interface for building the strategy platforms is illustratedin FIG. 11. The user may select a strategy platform 230 from a list ofpredefined strategy platforms, create a new strategy platform or edit astrategy platform used in the strategy platforms integration layer 204.In one embodiment, the user may double-click on a strategy platform inthe strategy platforms integration layer 204 to view the interface forthe selected strategy platform 240, such as “world class field support.”The inputs to strategy platform 240 include at least one list ofstrategy platform requirements. Strategy platform requirements are thedetailed requirements for the strategy platforms and may be directlytransformed into implementation activities. In the illustratedembodiment, four groups of strategy platform requirements are used:operational requirements 242 a, organizational requirements 242 b,technology requirements 242 c and knowledge requirements 242 d. A listof the organization's competencies and capabilities may also be providedfor the user. The list may be derived and updated from the competencyprofile generated by the ASSESS component 32 and may be edited by theuser as needed. In a preferred embodiment, the user may add strategyplatform requirements by dragging-and-dropping the organization'scompetencies and capabilities from a list (not shown) into one of thegroups of strategy platform requirements 242 a-d. The output of thestrategy platform 240 produces deployment strategy platform requirements246 and value creation opportunities 248. The user may select deploymentstrategy platform requirements 246 and value creation opportunities 248from a predefined list, modify existing list elements and create newdeployment strategy platform requirements and value creationopportunities definitions. An example of a “world class field support”strategy platform is illustrated in FIG. 12.

[0049] The fifth layer, strategy platform requirements 208, is used todefine the business and operational needs necessary to build thestrategy platforms. Each strategy platform requirement identified in thefourth layer, strategy platforms 206, is categorized and currentcapabilities and future requirements for the strategy platformrequirement to assist with the strategic goals are defined. In apreferred embodiment, each strategy platform requirement also includes acorresponding degree of existence that indicates the relativeavailability of the strategy platform requirement. Degrees of existencemay include “completely available,” illustrated as full circle 250,“partially available,” illustrated as a partially filled circle 252, and“not available,” illustrated as an empty circle 254. A sample databasestructure for storing the strategy platform requirements is illustratedin FIG. 19. The stored information preferably includes sufficient detailto directly transform strategy platforms, and groups of strategyplatforms, into implementation activities such as initiatives andprojects. In a preferred embodiment, each initiative and project will bedesigned to achieve a “completely available” status for one or morestrategy platform requirement.

[0050] In the preferred embodiment, the multi-layered strategydescription illustrated in FIG. 9 may be created in any order and mayeven be created by various individuals working independently. Inaddition, the user may select one or more predefined business modeltemplates to create a generic multi-layered strategy description thatmay be modified by the user and/or automatically updated in accordancewith the organization's specific requirements. The business modeltemplates are preferably real-world examples of successful multi-layeredstrategy descriptions and integrated implementation requirements thatsimplify the creation of the multi-layered strategy description.Strategy alternatives can be created by modifying the mappings and/ordefinitions in any of the layers. It should be appreciated that, asadditional data is generated in the continuous strategy cycle, thestrategy platforms and strategy alternatives can be automaticallyupdated in real time. Management will obtain real time feedback on theavailability of new capabilities and the expiration of old capabilities.Obsolete or faulty strategy can be immediately corrected andimplemented.

[0051] A preferred embodiment of the ANALYZE component 36 is illustratedin FIG. 5c. The ANALYZE component 36 includes processes for assistingthe organization's management in analyzing the strategic alternativesprepared by the FORMULATE component 34. The ANALYZE component 36 alsoretrieves the external assessment, internal assessment and decisioncriteria 74 generated by the ASSESS component 32. In a preferredembodiment, the analysis of the strategy alternatives includes a riskanalysis and an assignment of a score for each strategic alternativebased on the decision criteria. This may be accomplished usingconventional approaches as known in the art. After analyzing thestrategic alternatives, the end user may select one of the strategyalternatives 78 for implementation.

[0052] A preferred embodiment of the SELECT component 38 is illustratedin FIG. 5d. The SELECT component 38 includes processes for assisting theorganization's management in selecting and finalizing the vision andstrategy of the organization. The SELECT component 38 retrieves theexternal assessment, internal assessment and decision criteria 74generated by the ASSESS component 32 and the selected strategy 78generated by the ANALYSIS component 36. Through the SELECT component 38,the end user creates a detailed strategy specification and approves thefinalized strategy 80. In a preferred embodiment, the finalized strategy80 may be generated through one or more end user applications thatassist the end user in defining and describing the organization'sstrategy in relation to the product and service it offers and the marketsegments the organization is targeting.

[0053] Referring back to FIG. 4, a preferred embodiment of the STRATEGYALIGNMENT module 40 includes four components: ALIGN STRATEGY 42, ALIGNOPERATIONS 44, PLAN 46 and ASSIGN 48. The software components of theSTRATEGY ALIGNMENT module 40 function as part of a continuous cycle andmay be executed by an end user at any time and in any order. A preferredembodiment of the ALIGN STRATEGY component 42 is illustrated in FIG. 6a.The ALIGN STRATEGY component 42 retrieves the approved strategy 80 thatwas generated by the SELECT component 38 of the STRATEGY FORMULATIONmodule 30, as well as deployed performance metrics 92 previouslygenerated by the ASSIGN component 48. The ALIGN STRATEGY component 42 isused by the organization's managers to ensure that the strategicelements of the approved strategy are aligned. The ALIGN STRATEGYcomponent 42 outputs data describing the strategy alignment andstrategic elements 94, such as the organization's initiatives, valueplatforms, performance metrics and leadership roles. The ALIGN STRATEGYcomponent 42 may be implemented using conventional concepts of projectmanagement. FIG. 7 illustrates a preferred input screen 100 for use bymanagers in aligning strategic elements, such as enterprise initiativesand performance metrics. As illustrated, each metric is listed in acolumn 102 and each initiative is listed in a row 104. The end userutilizes the intersection between the columns 102 and the rows 104(alignment matrix) to define the relationship between each metric andeach initiative. In one embodiment, a symbol 106 is placed at theintersection of a metric and each initiative it supports.

[0054] In a preferred embodiment, the STRATEGY ALIGNMENT module 40provides managers with an enterprise strategy alignment for managingstrategy implementation. This alignment consists of frameworks, referredto herein as an enterprise strategy alignments, provides management witha tool to view of all aspects of the enterprise's strategic alignment.Through the enterprise strategy alignment, the speed of strategyexecution will be enhanced and the enterprise will have greaterflexibility to manage and adapt enterprise strategy. Through theenterprise strategy alignment, managers can ensure that strategic goalsare well supported by initiatives and that all of the initiatives arefocused in the same direction. The enterprise strategy alignment mayalso be used to define leadership roles and responsibilities and assignperformance metrics.

[0055] A preferred embodiment of a enterprise strategy alignment 300 isillustrated in FIGS. 13-18. Referring to FIG. 15a, an enterprise levelview of the enterprise strategy alignment 300 includes five lists ofstrategic elements that are aligned through five alignment matrices 302,as described in FIG. 7. As illustrated, the lists of strategic elementsinclude value platforms 306, enterprise initiatives 308, strategythrusts 304, strategic and operational performance metrics 310 andenterprise roles 312. Through the enterprise strategy alignment 300,each list of strategic elements 302-310, may be organized, managed andviewed. For example, the list of value platforms 306 may be prioritizedbased on strategic importance, operational impact, and value creationpotential. Each strategic element is presented to the user in a singlerow or column of its respective list of strategic elements 304-310.

[0056] The enterprise strategy alignment 300 provides a view and userinterface for aligning the strategic elements. The relationship betweenstrategic elements are defined through alignment matrices 302. Eachalignment matrix 302 is formed at the intersection of two lists ofstrategic elements, and includes a plurality of boxes formed at theintersections of the strategic elements. A plurality of symbol types arepreferably used to describe the relationships between the individualstrategic elements. For example, a checkmark 312 may be used to indicatethat two strategic elements are aligned, and an “X” 314 may be used toindicate that the two strategic elements are misaligned. Individualroles may also be described through a plurality of symbols, such asletters 314. As illustrated, each box of the alignment matrix 302indicates whether the role player will approve (A), lead (L), support(S) or implement (I) the corresponding strategic initiative 306. Eachalignment matrix 302 may be updated through the view illustrated in FIG.7.

[0057] The strategy alignment 300 brings into a single framework all ofthe elements that need to be aligned in an enterprise. In a preferredembodiment, each of the lists of strategic elements in the strategyalignment 300 is initially filled with information previously generatedby the ESM. The lists may be viewed, managed and updated through thestrategy alignment 300 using conventional user interface tools as knownin the art, such as scroll bars for scrolling through a large list.

[0058] Referring to FIG. 18, a preferred process for creating a strategyalignment is illustrated. The process starts with a strategic direction420 defined through the STRATEGY FORMULATION module 30. Next, strategythrusts 422 are defined. Each strategy thrust 422 is preferably ahigh-level statement that guides future business development and valuecreation. In a preferred embodiment, the strategy thrusts are generatedby the strategy formulation engine (described above). The achievement ofeach strategy thrust 422 is then quantified in terms of performancemetrics 424, which identify operational and strategic performancemeasures. The performance metrics 424 may be defined through a balancescorecard system as known in the art. The relationship between thestrategy thrusts 422 and the performance metrics 424 are defined throughan alignment matrix 302 a. The strategic thrusts 422 also form the basisof value creation platforms 428. Each value creation platform 428leverages the enterprise's resources to enable business offerings andcreates infrastructure to deploy new business offerings. Therelationship between the strategic thrusts 422 and the value creationplatforms 428 is defined through an alignment matrix 402.

[0059] Enterprise initiatives 426 may then be created to define howperformance metrics 424 and value creation platforms 428 are achieved.The relationship between the performance metrics 424 and the enterpriseinitiatives 426 is defined through an alignment matrix 402. Therelationship between the value creation platforms 428 and the enterpriseinitiatives 426 is defined through an alignment matrix 402. Oncecreated, the enterprise initiatives 426 may be assigned to particularroles 430. Assigning leadership roles for enterprise initiatives 426 isgreatly enhances the successful execution of the enterprise strategy.Although a preferred process for creating a strategy alignment 300 isillustrated in FIG. 14, it should be appreciated that the strategyalignment 300 may be developed in any order.

[0060] From the enterprise strategy alignment, each strategic elementmay be delegated to lower level entities in the enterprise, such asbusiness units. In a preferred embodiment, the enterprise strategyalignment is a multi-tiered framework that engages all levels of theenterprise in an integrated vision for the future. A multi-tieredenterprise strategy alignment is illustrated in FIG. 16. An enterprisestrategy alignment 350 defines an enterprise-level strategy alignment,including an assignment of roles for each enterprise initiative. Theseroles may be split among one or more business units 352. Each enterprisestrategy alignment 352 defines a business unit-level strategy alignment.In a preferred embodiment, the enterprise strategy alignment 352 isinitially created with the subset of strategic elements delegated fromthe parent strategy alignment. Each business unit then completes its ownalignment 352 (e.g., by following the process illustrated in FIG. 14).Each strategy alignment 352 at the business unit level may be brokendown into one or more alignments 354 at the operations level. At theoperations level, operations plans are developed that link and integratespecific operations and technology plans, metrics and projects thatdirectly enable the business unit strategies. It will be appreciatedthat, in alternate embodiments, the multi-tiered enterprise strategyalignment may include any number of tiers.

[0061] A preferred embodiment of the ALIGN OPERATIONS component 44 isillustrated in FIG. 6b. The ALIGN OPERATIONS component 44 retrieves theapproved strategy 80 that was generated by the SELECT component 38 ofthe STRATEGY FORMULATION module 30, as well as the strategy components,enterprise initiatives, performance metrics, leadership roles andstrategy alignment data 94 generated by the ALIGN STRATEGY component 42.The ALIGN OPERATIONS (see FIG. 15b) component 44 assists theorganization's management in ensuring that essential aspects of theorganization's operations, technology, and people are aligned with theapproved strategy. The data 96 produced by the ALIGN OPERATIONScomponent 44 includes operational elements such as operationsinitiatives and projects, project metrics and leadership roles, as wellas complete operations alignment data. The ALIGN OPERATIONS component 44may be implemented using conventional project management concepts tointegrate operational elements with the selected strategy. In apreferred embodiment, the operational elements are aligned by managersusing an alignment matrix as illustrated in FIG. 7.

[0062] A preferred embodiment of the PLAN component 46 is illustrated inFIG. 6c. The PLAN component 46 retrieves the strategy alignment,operational alignment, initiatives, projects, performance metrics andleadership roles 94 and 96 generated by the ALIGN STRATEGY component 42and the ALIGN OPERATIONS component 44, respectively. The PLAN component46 assists the organization's management in developing planscorresponding the approved strategy and alignments. In a preferredembodiment, the ALIGN OPERATIONS component 44 produces data 98 includingdetailed plans for initiatives, projects and performance, and a businesscase analysis. The ALIGN OPERATIONS component 44 may be implementedusing conventional project planning methods.

[0063] A preferred embodiment of the ASSIGN component 48 is illustratedin FIG. 6d. The ASSIGN component 48 retrieves the strategy alignmentdata 94 generated by the ALIGN STRATEGY component 42, the operationsalignment data 96 generated by the ALIGN OPERATIONS component 44, andthe business case analysis and detailed plans for initiatives, projectsand performance data 98 generated by PLAN 46. The ASSIGN component 48assists the organization's management in the synchronization, approvaland assignment of enterprise initiatives, projects and metrics. In apreferred embodiment, the output data 110 including initiativeimplementation plans, project implementation plans and deployedperformance metrics are generated by the ASSIGN component 48. The outputdata 110 may be generated using conventional approaches as known in theart.

[0064] Referring back to FIG. 4, a preferred embodiment of the STRATEGYIMPLEMENTATION module 50 includes four components: LAUNCH 52, IMPLEMENT54, MEASURE 56 and OPTIMIZE 58. The software components of the STRATEGYIMPLEMENTATION module 50 function as part of a continuous cycle and maybe executed by an end user at any time and in any order. A preferredembodiment of the LAUNCH component 52 is illustrated in FIG. 8a. TheLAUNCH component 52 retrieves the initiative implementation plans,project implementation plans and deployed performance metrics data 110generated by the ASSIGN component 48 of the STRATEGY ALIGNMENT module40. In addition, the LAUNCH component 52 retrieves data 118, includingenterprise performance reports, improvement plans and identifiedopportunities, previously generated by the OPTIMIZE component 58. Endusers use the LAUNCH component 52 to manage the launch of implementationactivity for the enterprise strategy. The LAUNCH component 52 generatesa status list of activated initiatives, activated projects and otherrelated data 112.

[0065] A preferred embodiment of the IMPLEMENT component 54 isillustrated in FIG. 8b. The IMPLEMENT component 54 retrieves theinitiative implementation plans and project implementation plans 110generated by the ASSIGN component 48 of the STRATEGY ALIGNMENT module40, the activated initiatives, activated projects and other related data112 generated by the LAUNCH component 52, and an execution resultsreport 116 previously generated by the MEASURE component 56. TheIMPLEMENT component 54 assists managers in facilitating the day-to-daymanagement of initiatives, projects and metrics. The IMPLEMENT component54 maintains data 114 on completed initiatives, completed projects andimplementation.

[0066] A preferred embodiment of the MEASURE component 56 is illustratedin FIG. 8c. The MEASURE component 56 retrieves the deployed performancemetrics 110 generated by the ASSIGN component 48 of the STRATEGYALIGNMENT MODULE 40, and implementation reports 114 from the IMPLEMENTcomponent 54. The MEASURE component 56 includes application tools forreporting and tracking the implementation of the organization's strategyand produces an execution results report 116. The MEASURE component 56may be implemented using conventional performance measurement approachessuch as a Balanced Score Card.

[0067] A preferred embodiment of the OPTIMIZE component 58 isillustrated in FIG. 8d. The OPTIMIZE component 58 is adapted to receivecompleted initiatives, completed projects and implementation reports 114from the IMPLEMENT component 54, and the execution results report 116generated by the MEASURE component 56. The OPTIMIZE component 58provides application tools for managers to use in identifyingopportunities and areas for improvement that arise during the executionof the organization's strategy. The OPTIMIZE component 58 producesoutput data 118 such as enterprise performance reports, improvementplans and lists of opportunities. The OPTIMIZE component 58 may beimplemented using feedback loop concepts to match opportunities withresources.

[0068] Having thus described a preferred embodiment the System andMethod for Enterprise Strategy Management, it should be apparent tothose skilled in the art that certain advantages of the within describedsystem have been achieved. It should also be appreciated that variousmodifications, adaptations, and alternative embodiments thereof may bemade within the scope and spirit of the present invention. For example,in the preferred embodiment the ESM includes three software modules,each of which includes four software components. However, it should beapparent to those skilled in the art that the present invention may beimplemented with a different number of modules and components. Inaddition, it should be appreciated that the strategy formulation engineand the enterprise strategy alignment may be implemented as part of anystrategy planning process, such as a conventional strategy planningprocess as illustrated in FIG. 1, or as standalone applications.

[0069] The scope of the present invention is defined by the followingclaims.

What is claimed is:
 1. In an enterprise strategy management system, astrategy alignment framework comprising: a first set of strategicelements having a first type; a second set of strategic elements havinga second type; and an alignment matrix having a plurality ofintersecting rows and columns, each row having a corresponding strategicelement of the first type and each column having a correspondingstrategic element of the second type, wherein a box is formed at theintersection of each row and column, each box providing a graphicalrepresentation of a relationship between the corresponding strategicelement of the first type and the corresponding strategic element of thesecond type.
 2. The strategy alignment framework of claim 1 wherein thefirst type of strategic element includes strategy thrusts and the secondtype of strategic element includes performance metrics, wherein thegraphical representations define an alignment of strategic thrusts andperformance metrics.
 3. The strategy alignment framework of claim 1wherein the first type of strategic element includes strategy thrustsand the second type of strategic element includes value creationplatforms, wherein the graphical representations define an alignment ofstrategic thrusts and value creation platforms.
 4. The strategyalignment framework of claim 1 wherein the first type of strategicelement includes strategic initiatives and the second type of strategicelement includes value creation platforms, wherein the graphicalrepresentations define an alignment of strategic initiatives and valuecreation platforms.
 5. The strategy alignment framework of claim 1wherein the first type of strategic element includes strategicinitiatives and the second type of strategic element includesperformance metrics, wherein the graphical representations define analignment of strategic initiatives and performance metrics.
 6. Thestrategy alignment framework of claim 1 wherein the first type ofstrategic element includes strategic initiatives and the second type ofstrategic element includes leadership roles, wherein the graphicalrepresentations define an alignment of strategic initiatives andleadership roles.
 7. In an enterprise strategy management system, anenterprise strategy alignment comprising: a hierarchy of alignmentframeworks, each including a first plurality of alignment matrices, eachalignment matrix providing a graphical representation of an alignmentstatus between two sets of strategic elements.
 8. The strategy alignmentframework of claim 7 wherein the first plurality of alignment matricesincludes: a first alignment matrix providing a graphical representationof the alignment status between a set of strategic goals and a set ofperformance metrics; a second alignment matrix providing a graphicalrepresentation of the alignment status between the set of strategicgoals and a set of value creation platforms; a third alignment matrixproviding a graphical representation of the alignment status between theset of performance metrics and strategic initiatives; a fourth alignmentmatrix providing a graphical representation of the alignment statusbetween the set of value platforms and the set of strategic initiatives;and a fifth alignment matrix providing a graphical representation of thealignment status between the set of strategic initiatives and a set ofleadership roles.
 9. The operations alignment of claim 7 furthercomprising: an operations-level strategy alignment framework including asecond plurality of alignment matrices, each providing a graphicalrepresentation of an alignment status between two sets of operationselements, wherein the operations elements include a subset of thestrategic elements.
 10. The strategy alignment of claim 9 furthercomprising: an intermediate-level strategy alignment framework includinga third plurality of alignment matrices, each providing a graphicalrepresentation of an alignment status between two sets ofintermediate-level strategic elements, wherein the intermediate-levelstrategic elements include a subset of the strategic elements.
 11. Anenterprise strategy management system comprising: a multi-levelenterprise strategy alignment framework including an enterprise-levelstrategy alignment framework, an operations-level alignment frameworkand at least one intermediate-level strategy alignment framework, eachstrategy alignment framework including a plurality of alignmentmatrices, each alignment matrix providing a graphical representation ofan alignment status between two sets of elements, wherein theintermediate-level strategy alignment framework links theenterprise-level elements to the operations-level elements.
 12. Theenterprise strategy management system of claim 11 further comprising: astrategy formulation engine adapted to produce a strategic plan for theenterprise, the strategic plan including a set of strategy thrusts forachieving a strategic direction of the enterprise, wherein theenterprise-level elements includes the set of strategy thrusts.